What about the residence permit in Malta??

20.06.2013

There is the new Global Residence Programme in Malta, which is provide the possibility to obtain a residence permit by non-residents who buy real estate and pay taxes in Malta.

This programme will replace the existing High Net Worth Individuals Rules (HNWI Rules), according to which the acquired real estate by non-European resident should have a cost from 400,000 euros. Also the possibility to obtain a residence permit is provided in the case of a leased real estate if the cost of leasing will be 20,000 euros a year. So we can see, that this regime meant for really wealthy individuals!

So what are the benefits and advantages which the new Global Resident Programme will offer us? For now an obligatory cost of the acquired property will be reduced and will depend on the region of Malta where this property is located. Thus, the total cost is 275,000 euros, except the south of Malta and Gozo - the minimum cost of the property located there will be 220,000 euros.

As for the leasing of real property, there is also some changes – 9,600 euro in Malta and 8,750 in the above mentioned regions. The requirement to invest in government bonds in the amount of 500,000 euros plus an additional payment for each family member will be abolished. The changes will also concern the minimal tax payments - they will be reduced from 25,000 euros (plus 5,000 euros for each family member) to 15,000 euros (independently of the region of Malta).

Based on: http://www.parlament.mt/home?l=1

Expert’s opinion

The residence permit in another country provides an advantage of free border crossing and free living.

And for some people, it is also an opportunity to leave before the leaving will become impossible.

People have different needs. So the residence permit has also a different cost.

Malta is a famous island which attracts tourists. Are you sure that you want to live there permanently? Plus, when you especially financially independent people. What can you do there? Is there any necessity to have property in Malta if it is not repaid? In general, it is clear that the Maltese residence permit is rather a ticket to Europe than a place for living.

So from this point of view, we understand that the Baltics offer similar products, and that is why for Malta there is only one possible way – to decrease the cost. Thus, the introduction of the new Global Residence Programme is clear.

Yaroslav Lomakin ( Managing partner of “Honest&Bright” company)